Typology of brand extension

            Typology of brand extension

Typology of brand extension is classified  Into mainly close extension, also called as continuous extension and discontinuous extension. Thus there would be brands that are very close to each other and others which eliminate technological synergies and physical links between products that form real diversification. This would result in having brands with narrow spectrum of presence or called as ‘specialised brands’ and brands with wide spectrum or called ‘generalist brands’ . The strategy that a company would more or less depend upon is, what consumers’ perceive about the brand. The perception about the brand is built over a period of time. Aaker views brand extension in a similar way. Here extensions are differentiated on the basic difference of whether the extension is in the same or different product category .

Horizontal Extension

These apply or extend the existing product’s name to a new product in the same product class or to a product category new to the company. There are two types of horizontal brand extension that differ in terms of their focus . They are termed line extensions and franchise extensions. Line extensions involve a current brand name that is used to enter a new market segment in its product class (example- Perk and Coffee Perk, in India). This is most successful in the case of extensions being in almost the same business as the core product. In contrast, franchise extension uses the current brand name to enter a product category new to the company .

Example: Reliance is into telecom,mobile handsets,consultancy,infrastructure,reliance fresh etc